Type of home insurance coverage?

we're shopping for home insurance, is there certain coverage we should look out for? TIA!

Re: Type of home insurance coverage?

From my recent experience I learned a lot about home insurance.


CONTENTS :
RCV vs. ACV on contents - ACV is cheaper on your insurance, but if you need the insurance one day - the depreciation is a killer. They depreciate every item 30%, some items get depreciated 90%.

RCV -they have to pay u what it costs to replace the item.

You'd be surprised how much $ in contents you have. Make sure it's decent coverage in your policy.

DWELLING :
Is it enough to rebuild your home ?
It costs about $150 a square foot to rebuild your home. Multiply your square footage and see if you would be ok.

Additional Living Expenses :
What do they actually cover if you are displaced ? Your entire rent ? is there a cap on it ?
It costs atleast $2k to rent a home on LI. Make sure if you were displaced, your insurance will cover it. Last thing you want to do is be stuck paying mortgage + rent because your insurance was not succifient.
Rentals were more like 2800-3500 when i needed a home.

Message edited 1/9/2013 12:36:43 PM.

Type of home insurance coverage?

The most important features of a home policy are:
Replacement Cost on your dwelling & personal property
Water backup
at least 500k in liability

There are so many other coverages included, but these are the most important.

Feel free to contact me with any questions.

Re: Type of home insurance coverage?

Our lender had their own requirements for the minimum coverages we needed. So we basically went with that. The insurance company said it was pretty standard.